PROFESSOR: MORE MONEY FOR NEW ENERGY

The world expends 10% of its nearly $60 trillion in annual economic resources on energy, about $5+ trillion. It is universally acknowledged that energy demand is rapidly outstripping energy supply adequate to meet the evolving needs of a world challenged by global climate change. Yet total annual world outlay for energy R&D, public and private, is a mere $30 billion.

The Bush administration takes pride in having spent $12 billion on New Energy R&D over its two terms but a Harvard professor told a Washington International Renewable Energy Conference (WIREC) audience the U.S. and the world can and must do much better. John Holdren, professor of environmental policy, Harvard University: "Current federal energy R&D programs are not commensurate in scope and scale with the energy challenges and opportunities the 21st century will present…Any assertion that we can't afford to increase research and development is simply wrong…We can easily afford it."

The present administration has paid great lip service to the energy infrastructure of the future while doing much to slow its development. The present waylaying of tax credit extensions in Congress is an excellent example. Funding the boondoggle of corn ethanol is another example. Touting the Big Oil-and-Detroit "bait-and-switch" hydrogen highway promises is a third. Maybe it would be best to keep Professor Holdren’s words in mind and wait until after January 2009 to follow his advice.

Meanwhile ExxonMobil impressed a WIREC audience by announcing new investments of $125 billion. Rex Tillerson, CEO, ExxonMobil: "We will almost double our production of LNG over the next three years, providing greater supplies of this clean-burning energy source for power generation and for industrial and domestic use…"

The first thing the U.S. needs an R&D study on is why ExxonMobil’s CEO thinks LNG is “clean-burning.” Cleaner, yes; clean, no. It is a hydrocarbon. It spews CO2 when it is burned.

Not a pretty picture. (click to enlarge)

The ballooning price tag for energy; A huge chunk of world wealth goes to its unquenchable energy thirst, but an expert says not enough money is invested in newer, cleaner energy solutions
Steve Hargreaves, March 6, 2008 (CNNMoney)
and
Exxon Mobil to invest over $125 bln dlrs in new energy projects
March 5, 2008 (AFP via Yahoo News)

WHO
John Holdren, professor of environmental policy, Harvard University; Peter Robertson, Vice Chairman, Chevron; ExxonMobil Corp (Rex Tillerson, CEO)

You get what you pay for. (click to enlarge)

WHAT
- Professor Holdren told a Washington International Renewable Energy Conference (WIREC) audience it will require big spending over the next 2 decades to build a 21st century New Energy infrastructure. Mr. Robertson told the same audience the dearth of trained energy scientists and engineers requires investment in education as well as infrastructure.
- ExxonMobil will invest $125 billion in new projects to meet growing demand.

WHEN
- 2001 to date: $12 billion – Bush administration expenditure for New Energy R&D
- 2007: $2 billion – U.S. private sector spending on New Energy
- According to Professor Holdren, U.S. spending on New Energy R&D is at about the same level as it was in the early 1980s.
- ExxonMobil’s $125 billion investment will come over the next 5 years.

WHERE
Remarks were made March 5 at WIREC.

WHY
- Mr. Robertson said world energy demand is expected to grow 50% in the next two decades.
- Given much greater energy consumption and even greater anticipated energy needs, the levels of New Energy R&D are in both Professor Holdren’s and Mr. Robertson’s views much too low.
- Tillerson said ExxonMobil presently has 119 projects expected to generate the energy equivalent of 24 billion barrels of oil. Much of ExxonMobil’s investment will be in its liquefied natural gas (LNG) projects. It is likely the investments will return handsome profits.

Repeat: You get what you pay for. (click to enlarge)

QUOTES
- Robertson, Vice Chairman, Chevron: "I don't think we're raising enough people to do the R&D…In the U.S., science and engineering grads are pathetically low."
- Robertson, Chevron, approving of Professor Holdren’s assertions about the need for new infrastrucutre:"Energy infrastructure, once built, is incredibly long-lived, lasting generations or even centuries…We'll need all available [energy] sources."
- Tillerson, ExxonMobil: "We will invest record amounts to develop new technology, bring on new upstream projects, increase our base refining capacity and grow our chemical business…"